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Malawi is not exactly known for its wildlife. Where in the towns you will be staying, its ok to walk during the day, but a good idea to take a taxi at nite.

Korea Garden Lodge is really budget. Go for the better type of rooms or you will be very unhappy. Its in Lilongwe. In a residential area but close to the center of town. www.kglodge.net/accom.htm

When I was there last, the country clushort walk) let people into the golfers dining area(campers too). Good place to meet some locals and even some overlanders camping there. Cold beer and good burgers.

Nyaja Lodge Nkhata Bay- www.njayalodge.com/njaya_about.htm
As you can see it is up and away from the beach, a walk from town, but is a fun place. Try for something on the beach if you can. Lots of backpackers and some overlanders.

From what is of the websites of the two, probably was a good reason I never went to those. As close as you are to Zambia, I would think a few days at SLNP would be a better idea then those two. I believe there are accomodations within your budget at SLNP too.